Replies to post #151320 on Biotech Values

[mcbio]

I do think end of life drug costs are out of whack, going to have correction at some point. I have consciously shifting long term investing more to chronic disease spaces like diabetes in like NVO, AMLN, etc gradually.

While I'm certainly not going to disagree with you on drug costs and some kind of potential correction in those costs in due time, I'm also not going to be abandoning my small-cap oncology plays because of such a fear. I think the cost concerns are actually more of an issue for the large-cap biotechs whose share prices are driven more by actual current earnings than the small-cap biotechs that I invest in whose share prices are more immediately tied to the near-term fate of the progress in their pipelines. (Obviously, any correction in prices impacts long-term earnings for small-caps too but I think success in the pipeline, particularly if you get in at the right valuation, can trump these concerns.)